How are Real Interest Rate Calculated on Margin Funding? – BITFINEX

Do you want to use Bitfinex’s Funding tool to earn extra money while you are not trading with your USD, BTC, ETH and other altcoins? Do you know how much money will you earn at certain rate while lending your BTC, USD, ETH & etc.?

Please see below an example of how interest and fees are calculated when you offer margin funding:

For instance you have an active $10,000 USD offer at 0.06% you would earn $6.00 USD per day. On those $6.00 USD a 15% fee is charged, so $0.90 USD. You will receive $5.10 USD per day that offer is active.

But in reality rates are a little bit tricky to calculate. For example see below chart where are current rates for every coin and usd, euro.

Under the column LAST is shown rates on which the market is ready to Fund & Finance their trade activity. For example: BTC rate is 0.022400 That means the daily interest rate is 0.0224. And you want to lend 1 BTC which equals let’s say $15000.

How much will you earn in one day of lending this amount? You Can Not multiply $15000 x 0.0224 = $336

The rate which is shown is a daily rate so in order to find monthly or annual rate you have to multiply it with 30 or 364. Annual Rate for BTC Lending is 0.0224 x 364 = 8.16%

Long Story Short for quick calculation just DIVIDE your rate by 100 and then multiply with your Funding (Lending) Amount.

P.S. Higher percentage of interest income is in USD & EURO Lending. Where risks are very low and you are secure from sudden price drops. For example from above chart we can see that annual lending EURO will bring you 0.091312 x 364 = 33.24% of income. Which is quite Huge.

Enthusiast and Supporter of the Blockchain Technology. Studied at Economic Science in Qafqaz University & MBA in Azerbaijan State Economic University, had experience in banking sector. Now businessman and investor.

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